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Installing Rocksmith to 360 HDD

I can't find any info on this online; I figure the crowd here will know about this. I recently got the original Rocksmith game for the 360, and I've tried installing it to hard drive twice. Now, the procedure to copy the disc data to HDD works just fine, but when I go to play the game, it still reads the game disc as though I had never installed it to HDD. I don't know why, and it's the only game that does this. I have Rock Band 3 installed to HDD and it doesn't use the game disc after verifying it's in the disc tray at start up of the game, so I'm familiar with how the console behaves when loading from HDD. Also, it doesn't matter if I select the game from the main screen in the dashboard, or if I select play from the menu where I can delete/reinstall the disc to HDD.

I have only 2 guesses to explain this issue: either Rocksmith has software that prevents the 360 from allowing it from being played off the HDD which is something I never heard of any game doing, or the console requires being connected to XBL to somehow enable permission for playing this particular game from HDD. I cannot find anything online, even the official support page from the MS Xbox 360 website to verify that XBL is in any way required for this feature to work. I know that games already installed to HDD don't require XBL as I never have my 360 hooked up to the network and I see no issues loading my few other games, all installed on HDD.

I still have the older firmware, the one before the "Kinect style" version of the 360 firmware. Rocksmith required an update to be installed before it would allow me to play it, and my Dashboard interface did not change, so the game disc did not carry a copy of the latest 360 firmware on it, but it definitely installed something. Should I temporarily connect to XBL to upgrade the firmware and see if that helps?

Are you trying to play the first Rocksmith or RS2014?
Maybe it just installs part of the software for faster loading.. it might need the disc to play the game. I am not sure I dont have a 360, I have the ps3 version and that requires the disc.
You might want to just get RS2014 instead if you are dealing with the first Rocksmith. The 2014 version is way better and there is alot more good dlc content available on the 2014 version.

By original I meant the first release. Yeah, I've seen the 2014 version. The on-disc setlist looks like a great assortment and the new practice functions and lessons are something I want to have that the original doesn't offer. At times I find that when I've learned a certain riff, it's easier to just practice without the game before continuing onward since there is no customisable practice mode that I see 2014 has. Being able to bump the difficulty up manually looks helpful too. Sometimes it's annoying to intentionally play a filtered riff when your ear expects all the notes... For the time being I have a lot of material to go through still before I will pick up 2014.

By original I meant the first release. Yeah, I've seen the 2014 version. The on-disc setlist looks like a great assortment and the new practice functions and lessons are something I want to have that the original doesn't offer. At times I find that when I've learned a certain riff, it's easier to just practice without the game before continuing onward since there is no customisable practice mode that I see 2014 has. Being able to bump the difficulty up manually looks helpful too. Sometimes it's annoying to intentionally play a filtered riff when your ear expects all the notes... For the time being I have a lot of material to go through still before I will pick up 2014.

I can understand how you might feel like you want to work with the original Rocksmith before getting RS2014, but RS2014 is just way way better than the original.
The load times on RS2014 are much faster than the original. This alone makes the game a million times better than the original. Songs load really fast, just a few seconds.
Also, for 10$ you can import all the songs from the first rocksmith to RS2014. You can transfer over all the on disc songs from the first disc except for 2 songs, the clapton and Boss songs. Except for the 2 missing songs, the 1st game is totally obsolete.

The Riff Repeater (practice mode) is also alot better in the 2014 version. You dont have to level up each part of the song, you can just set the difficulty with all the notes, which is what I do. I always set all the songs to 100% because I cant stand the missing notes.
RS2014 uses the same cable as the first game so you could just find a disc only copy, probably for cheap.